The Southwest light-rail line was allocated $10 million in the temporary federal budget being considered by lawmakers in Washington — news that the Metropolitan Council says is a sign the project will win its full $928 million grant from the Federal Transit Administration (FTA) later this year.
The fate of the $1.9 billion line, which would connect downtown Minneapolis to Eden Prairie, had been unclear since President Donald Trump's initial transportation budget proposal did not fund new mass transit projects in the fiscal year. Without the federal money, it was unlikely that Southwest could move forward.
But the $1.1 trillion budget deal struck by Washington lawmakers Sunday indicates that Southwest is one of four transit projects in the works that are expected to get "full funding grant agreement awards in 2017," the council said. The other three projects are in Maryland, California and Washington state, according to an FTA document.
The budget deal is expected to be voted on later this week.
Met Council Chairman Adam Duininck said in a statement Monday, "This is encouraging news. The inclusion of [Southwest] in the proposed budget is an indication that the federal delegation understands this project is a key piece of our region's transportation infrastructure. This type of federal backing does not occur without broad support from the local community and a strong case for a successful project."
For Southwest to qualify for federal funds, it must first secure half of the capital costs from local sources, in this case Hennepin County, the state, and the Counties Transit Improvement Board (CTIB), which levies a local sales tax for transit.
The Met Council may be part of that funding picture, if it resorts to issuing $103.5 million in certificates of participation, a financial tool occasionally used by public bodies for big projects.
In addition, the FTA is requiring that the council reach agreements with three railroad companies to share part of the route with Southwest trains along the 14.5-mile line — BNSF Railway, Canadian Pacific Railway and Twin Cities & Western Railroad Co.